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Light at the end of the tunnel for domestic oil marketing companies

Marketing margins to support earnings, while refining outlook can improve with vaccine launches driving global economic recovery

Light at the end of the tunnel for domestic oil marketing companies
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Indian OMCs have resilient marketing earnings to offset the refining weakness, say analysts at Morgan Stanley

Ujjval Jauhari Mumbai
Even as concerns over the global spread of the pandemic remain, positive news flow on Covid-19 vaccine has raised hopes of global economic recovery next year and improved prospects for oil and gas demand. This, in turn, also improves the outlook for domestic oil marketing companies (OMCs) such as Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOC), which have seen worries on demand and weak refining margins impacting sentiments.

With the US elections also behind, brokerages are expecting the focus to shift to economic revival in the world's largest economy. OMCs are already in news with the divestment

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First Published: Nov 20 2020 | 1:18 PM IST

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